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UK Edition
12th January 2024
 
THE HOT STORY
Job vacancies in UK decreased by 32% in December
British employers advertised 32% fewer job vacancies in December compared to the previous month, indicating a further cooling in the hiring market. The Recruitment and Employment Confederation (REC) reported 1.71 million job vacancies, a significant decline from 2.517 million in the previous year. REC chief executive Neil Carberry said: "The labour market weakened across 2023, especially for permanent roles. But it did so from a very high base." However, Carberry observed that there is anecdotal evidence suggesting employers plan to increase hiring in 2024. The REC figures, compiled by employment data company Lightcast, show a similar trend but higher job vacancies compared to the Office for National Statistics (ONS) data.  ONS figures for December are expected to be released soon.
LEGAL
Pandemic exposed discrimination against older people, MPs hear
Ageism is under the spotlight after MPs heard that ageist views were publicly expressed during the pandemic. The Women and Equalities Committee is investigating whether discrimination and ageist stereotyping are preventing older people from fully participating in society. The committee is also considering the case for an Older People's Commissioner for England. Witnesses at the committee's hearing spoke about the normalisation of ageism in the UK, with damaging effects on health, job prospects, and the economy. They highlighted the use of discriminatory language and stereotypes, which can affect how older people view themselves, and some said the pandemic has emboldened some people to express ageist views publicly, and there is a risk that this becomes normalised. Witnesses also criticised the UK government for not taking the issue of ageism seriously and for a lack of understanding about the lives and needs of older people. The consequences of this were seen in decisions made during the pandemic, they said.
Uncertainty surrounds employment law reforms
The new year has brought uncertainty to employment law in the UK as EU legislation is replaced and the government introduces measures to address workers' rights in relation to holiday pay. However, these reforms have left many questions unanswered, writes Kerry Garcia for The Times. One of the most controversial issues is the definition of "normal remuneration" for annual leave, which has long been debated in the courts. The government has attempted to legislate the calculation of holiday pay but has avoided addressing issues such as the inclusion of discretionary bonuses. The author says the government has also missed an opportunity to simplify the law by not combining the two pots of statutory annual leave: four weeks from European law and the additional 1.6 weeks from domestic leave. In some cases, workers are entitled to different rates of pay for each pot, although many employers choose to pay a uniform, higher rate for all statutory leave.
Dyslexic bank manager wins £473k in discrimination case
A dyslexic Lloyds bank manager has been awarded £473,000 in damages after being unfairly dismissed for inadvertently using a racial epithet. Carl Borg-Neal accidentally said the offensive word during a training session and immediately apologised. The tribunal judge noted that there was no malice in his use of the slur and that his dyslexia affected his vocabulary. The trainer conducting the session was so distressed that she took leave to recover. Borg-Neal became the focus of a racism investigation and was ultimately dismissed for gross misconduct. He sued the bank for unfair dismissal and disability discrimination. The tribunal ruled that while his use of the word was ill-judged, there was no intention to cause hurt. The ruling stated that the case involved unusual circumstances and no reasonable employer would have dismissed him. Borg-Neal had worked for Lloyds for several years and was a mentor to three workers at the time of the incident. He experienced severe mental and physical health issues as a result of the ordeal.
Fashion worker wins £60,000 compensation after falling through platform at Stella McCartney showroom
A fashion worker has been awarded £60,000 in compensation after breaking her foot falling through a platform at a Stella McCartney showroom in Milan, Italy. Chloe Mickelborough climbed over a second-floor railing onto what appeared to be stable flooring, but was actually made of flimsy plastic. She fell 14ft onto a concrete floor, resulting in two operations and symptoms of post-traumatic arthritis. Mickelborough sued for £90,000, claiming that the accident has left her unable to wear heels, dance, or go running. The judge ruled in her favour, stating that there was no warning sign indicating the danger of crossing over the rail. However, the compensation was reduced by a third due to Mickelborough's partial responsibility. Stella McCartney's company was ordered to pay £60,000 towards the legal fees. "She can only wear supportive trainers, as opposed to more fashionable footwear," said Mickelborough's barrister, Michael Patrick.
Former recruitment head sues bank over ‘excessive workload’
The former head of recruitment at Goldman Sachs is suing the investment bank for more than £1m, claiming that he was forced to work “unreasonable and excessive hours” which led to “physical and psychiatric injuries.” Ian Dodd, who was Goldman’s global head of recruiting in London between 2018 and 2021, says the workload placed on him by the US bank caused him to develop a depressive disorder and heart issues. Dodd, who previously accused Goldman of having a “culture of bullying,” has lodged a personal injury claim at the high court and a full trial is expected to start in 2025.
REGULATION
Former Wyelands CEO fined £120k for mismanaging financial exposure
The former CEO of Wyelands Bank, Iain Mark Hunter, has been fined £118,808 by the Bank of England for failing to properly manage the bank's financial exposure. The Prudential Regulation Authority (PRA) stated that it would have fined the bank £8.5m if it was not already winding down. Sam Woods, the Bank's deputy governor for prudential regulation and the PRA's chief executive, said: “This outcome reflects material breaches of the PRA's senior manager conduct rules and individual conduct rules." He added: “If senior individuals fail to meet the conduct rules, as Mr Hunter did, it undermines the trust in financial institutions and the wider financial system."
STRATEGY
Robert Walters cuts 220 jobs
Recruitment firm Robert Walters cut 220 jobs in the last quarter, reducing the size of its workforce by 5% to 3,980 from 4,200. The firm said the move came amid a “focus on driving consultant productivity.” The recruitment sector has come under pressure in recent months, with many firms reducing their hiring activity following increases to interest rates and wage inflation. Fellow recruiter Hays last week revealed it had reduced its global workforce by around 600 roles in a bid to reduce costs.
DIVERSITY, EQUITY & INCLUSION
Investing in Women co-chairs lined up
Sky News reports that Hannah Bernard, the head of Barclays' business banking operation, and Debbie Wosskow, founder of tech start-up Love Home Swap, have been recommended by officials to spearhead a UK government-backed taskforce on female entrepreneurship. The taskforce, which is expected tobe  named Investing in Women, will replace what was known as the Rose Review. Officials are revamping the initiative following the departure of Dame Alison Rose, who stepped down after her resignation as NatWest Group’s chief executive amid the debanking scandal.
WORKFORCE
FSCS to bolster in-house expertise
The Financial Services Compensation Service has announced that it will spend £8.7m on increasing its in-house expertise to deal with the increase in complex claims. Interim chief executive of the lifeboat scheme, Martyn Beauchamp, said this means the organisation could reduce the amount it spends on outsourcing in 2024/25. Beauchamp said: “We anticipate a nominal increase in our costs next year due to the strategic decision to reduce our outsourcing.”
REMUNERATION
Many top earners do not feel feel rich
Many top earners in Britain, including those in the top 10%, do not feel wealthy despite their high incomes. Research from Redfield & Wilton Strategies shows that a third of six-figure earners do not feel rich, and 60% of Britons earning £80,000-£100,000 consider themselves "about average" on income levels.
LEADERSHIP
EY extends UK boss’ tenure
EY has extended Hywel Ball’s tenure as its UK chair, marking the second time that the 61-year-old has been granted an exemption from the Big Four firm’s mandatory retirement age of 60. Partners have reportedly been told that Ball, who has run the British business since 2020, will receive a one-year extension and lead EY until June 2025. A spokesperson said: “As has been standard practice for many years, EY partner tenures are regularly extended in the UK and across the global network for a variety of reasons including client delivery and leadership responsibilities.”
INTERNATIONAL
Global unemployment rate expected to rise to 5.2% in 2024
The global unemployment rate is expected to rise to 5.2% in 2024, according to the International Labour Organization (ILO). The ILO's 2024 World Employment and Social Outlook report predicts a 2 million increase in the number of unemployed people, resulting in the higher unemployment rate. The ILO attributes this rise to a slowdown in global growth. The report also highlights concerns about slow productivity growth, which can impact real wages and disposable income. While upper-middle-income countries are not expected to see significant employment gains, low-income and lower-middle-income countries are projected to experience robust job growth. High-income countries, on the other hand, are expected to see negative employment growth in 2024. The ILO warns that only modest improvements are anticipated in 2025 for these countries. "During periods of slow productivity growth, real disposable income and real wages are often vulnerable to sudden price shocks," the ILO report observed.
Elon Musk's X cuts 1,000 staff amidst spread of harmful content
Australia's eSafety Commission has revealed that Elon Musk's X has cut over 1,000 staff globally, leading to concerns about the spread of harmful content on the social media platform. The regulator has been focusing on X's increase in "toxicity and hate" since Musk's takeover. The figures obtained by the eSafety Commission show that 1,213 specialist "trust and safety staff" have left X since the acquisition. This includes 80% of the software engineers focused on "trust and safety issues." Commissioner Julie Inman Grant compared the impact of these cuts to Volvo eradicating all of their designers or engineers. The eSafety Commission has been at the forefront of regulating social media, but X has been resistant to its attempts, including ignoring a fine for failing to crack down on child pornography. X has not responded to requests for comment.
UAE employees cannot now be fired from their jobs over mental health conditions
A new UAE law means locals employers cannot make decisions about hiring, terminating or restricting job opportunities over a mental health condition. It’s similar to how companies are not allowed to take hiring or firing decisions based on the physical health of an employee. Dr Hind Alrustamani, CEO and founder of Aman Lil Afia Clinic, told Khaleej Times: “Instead, any decision regarding employment must be based on a report from a specialised medical committee that evaluates the individual's condition in relation to their job . . . [this] fosters an environment where individuals feel secure in seeking help without fearing repercussions at work. It's a step towards a more compassionate and understanding workplace, recognising that mental health challenges shouldn't hinder someone's professional journey.”  
 


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